I’m an ex-fundigelical, and while I understand the desire to keep old friendships, the reality is that people can change; even worse, it can be due to getting caught up in weird cults that demand loyalty above reason and sense.

Whether it will end up bad for you isn’t something anybody can predict, but it sounds like she’s not someone who will be supportive of who you are (or at the very least, other queer people like you). Most fundies think you can “pray the gay away,” so I would suspect it’s only a matter of time until she starts treating you like a religious project and not like a respected friend.

Only you can decide if you think it’s worth continuing to invest in the relationship. If it’s something you truly value, and you think she’d listen, it might be worth having a talk with your friend and telling them that the things they say and do are hurtful. If she doesn’t care, then that kind of tells you where her loyalties lie.